2015 (6) TMI 789 - AT - Service Tax

Manpower Recruitment and Supply Agency Services - Held that - Issue is regarding the taxability of an amount paid by the appellants to one of the Sansta which is engaged in providing labour for harvesting and transportation of sugar cane to the appellants for sugar factory. It is the case of revenue that this activity will fall under the category of Manpower Recruitment and Supply Agency Services . We find that this issue is no more res integra. - In view of authoritative judicial pronouncements on the issue in hand, we find that impugned orders are unsustainable and liable to be set aside - Decided in favour of assessee.

Summary

Issues: Taxability of amount paid by the appellants to a Sansta providing labor for harvesting and transportation of sugar cane to the sugar factory under Manpower Recruitment and Supply Agency Services.

Analysis:
The Appellate Tribunal CESTAT MUMBAI, comprising Hon'ble Mr. M.V. Ravindran, Member (Judicial) and Hon'ble Mr. P.S. Pruthi, Member (Technical), heard the appeals against Orders-in-Original No. 3/ST/2009 and 18/ST/2009. The issue at hand concerned the taxability of the amount paid by the appellants to a Sansta providing labor for harvesting and transporting sugar cane to the sugar factory. The revenue contended that this activity falls under Manpower Recruitment and Supply Agency Services.

Upon reviewing the records, the Tribunal noted that similar issues had been previously addressed by the Bench in various cases, including CCE v. Shriram S.A.O.T.V.S. Ltd., Bhogavati Janseva Trust v. CCE, Satara S.S.O.T.V.S. v. CCE, and Samarth Sevabhavi Trust v. CCE. The Tribunal also referenced the decisions of the Hon'ble High Court of Bombay in cases like Shri Samarth Sevabhavi Trust & Ors. and Godavari Khore Cane Transport Co. (P) Ltd., which implicitly supported the views expressed in the aforementioned cases.

Based on the authoritative judicial pronouncements and precedents on the issue, the Tribunal concluded that the impugned orders were unsustainable. Consequently, the Tribunal set aside the orders and allowed the appeals with any consequential relief. The decision was dictated in court, bringing the matter to a favorable resolution for the appellants based on established legal interpretations and precedents.